If you're thinking about remodeling your home, you may be wondering if you'll ever get your money back, should you decide to sell. The annual Cost vs. Value report from Remodeling Magazine may be what you need to gain some insight.
Keep in mind that the data used in this report is based on estimates by remodeling contractors for hypothetical projects, and estimated resale data has been provided by Realtors®. This doesn't take into account fluctuations in the economy and the real estate market.
The construction cost estimates are generated by HomeTech Information Systems of Bethesda, Maryland. They look at a nationwide network of remodeling contractors for labor costs, and then prepare a construction estimate for each project. They adjust baseline costs for each city to account for pricing variations.
Based on construction estimating software we have used in the past, this brings some of the data into question, as we have not found any estimating software we trust. It didn't take us long to figure out, after losing money on a project, that the old fashioned, but reliable, manual cost estimating works best. Aside from that consideration, you may find some of the data interesting, so I thought it was worth sharing. All data I'm sharing here is from the Pacific region.
The highest return on your investment for midrange remodeling (relatively small projects) was in replacing your front entry door with a new steel door. According to the study, this actually returned 112% of replacement costs. In comparison, replacing the entry door with a fiberglass entry door only returned 67.8%.
Next highest return was in replacing your garage door, which came in at 96.4%. Other areas where you can get a respectable 80% or more return are as follows.
- Adding wood deck 86.5% return
- Adding fiber cement siding 85.6% return
- Minor kitchen remodel 84.1% return
- Replace windows with wood windows 83.3% return
- Basement remodel 82.6% return
- Replace windows with vinyl windows 80.5% return
Interestingly, although we get many requests for estimates for composite decking, the return on investment came in lower than wood decking at 79.1%. In our personal experience, composite decking is not necessarily the maintenance free product it is touted to be. Ours is delaminating before our eyes...
The lowest return on investment was in adding a sunroom. So, if you're thinking of adding one to capture those rays, be aware that you may only get back about 53.3% of the money you invest in its construction.
For more details, and to see data for other regions of the U.S., Click Here to visit Remodeling Magazine's website.